Accountancy MCQ
21. Which of the following is not
considered as a main branch of
accounting?
(a) Cost accounting
(b) Management accounting
(c) Financial accounting
(d) Corporate accounting
22. The main purpose of which branch of
accounting is to record the business
transactions in a systematic manner and
to ascertain the profit or loss of the
accounting period?
(a) Cost accounting
(b) Corporate accounting
(c) Financial accounting
(d) Profit and loss accounting
23. Each and every branch has its separate
set of objectives. Which of these branches
of accounting directly or indirectly helps
in management decisions?
(i) Cost accounting
(ii) Management accounting
(iii) Financial accounting
(a) Only (ii) (b) (i) and (ii)
(c) (i) and (iii) (d) All of these
24. The main purpose of cost accounting is
to ascertain …. of …… rendered by
business.
(a) total cost, goods
(b) per unit cost, goods
(c) per unit cost, services
(d) total cost and per unit cost, goods and
services
25. Cash flow statement is a technique of
management accounting.
(a) True (b) False
(c) Partially true (d) Partially false
26. Which of this is not an internal user of
acounting?
(a) Owners (b) Employees
(c) Management (d) Potential investors
27. Public is not a user of accounting.
(a) True (b) False
(c) Partially True (d) Partially false
28. …… need information to form policies
at the macro level and for providing
subsidies.
(a) Tax authorities
(b) Competitors
(c) Management
(d) Government and its agencies
29. Which of these are example(s) of
short-term creditors?
(a) Financial institutions
(b) Suppliers of goods and services on credit
(c) Both (a) and (b)
(d) None of the above
30. Accounting is a means to determine the
current worth of a business enterprise
on the basis of its profit earning
capacity. The given statement highlights
which of the role of accounting?
(a) As a language
(b) As current economic policy
(c) As a historical record
(d) As an information system
31. Information provided by accounting
should be factual and rerifiable. It
should be free from error and bias. It
should be such that users can depend
upon the information provided.
The given description describes an
essential qualitative characteristic of
accounting information. Name it.
(a) Relevance (b) Reliability
(c) Comparability (d) Understandability
32. Which of the following describes
‘Qualitative characteristic
understandability’ in the best manner?
(a) Decision makers must interpret the
information in the same sense as it was
described to them
(b) Accounting reports must be of common
period
(c) Information must be available in time
(d) None of the above
33. Match the columns.
Column I Column II
A. Workers (i) External users
B. Employee unions (ii) Internal users
C. Relevancy (iii) Available in time
D. Comparability (iv) Common period
related
information
Codes
A B C D
(a) (i) (ii) (iii) (iv)
(b) (i) (ii) (iv) (iii)
(c) (ii) (i) (iii) (iv)
(d) (ii) (i) (iv) (iii)
34. A business transactions is an economic
activity of the business that changes its
financial position. A business
transaction is the consequence of event.
(a) True
(b) False
(c) Partially true
(d) Partially false
35. Accounts are generally divided into
different segments. In how many
segments, all accounts are divided
based on the nature of transactions?
(a) 2 (b) 3
(c) 4 (d) Can’t say
36. Pick the odd one out.
(a) Owner’s equity
(b) Drawings
(c) Net worth
(d) Net assets
37. The following equations shows the
relationship between assets, liabilities
and capital. Which of the following is
the correct equation?
(a) Capital = Liabilities - Assets
(b) Liabilities = Capital - Assets
(c) Assets = Liabilities + Capital
(d) Capital = Assets + Liabilities
38. Which of these is not a part of current
liabilities?
(a) Bank overdraft (b) Bills payable
(c) Debentures (d) Creditors
39. Intangible assets are those assets which
do not have a physical existence and
cannot be seen and felt. Therefore,
intangible assets are not valuable assets.
(a) True (b) False
(c) Partially false (d) Can’t say
40. Which of the following assets is/are
known as ‘active assets’?
(a) Tangible assets
(b) Intangible assets
(c) Current assets
(d) Both (a) and (b)
21. (d) 22. (c) 23. (d) 24. (d) 25. (a) 26. (d) 27. (b) 28. (d) 29. (b) 30. (b)
31. (b) 32. (a) 33. (c) 34. (b) 35. (a) 36. (b) 37. (c) 38. (c) 39. (b) 40. (c)